JPMorgan Chase CEO Jamie Dimon warned Monday that US President Donald Trump’s new announced tariffs could stoke inflation and potentially tip the US economy into a recession.
“The recent tariffs will likely increase inflation and are causing many to consider a greater probability of a recession,” Dimon wrote in his annual letter to shareholders.
He added that inflationary pressures could arise not only from imported goods but also from domestic products, as input costs rise and demand shifts inward.
“We enter this time of uncertainty with high equity and debt prices, even after the recent decline,” Dimon said.
Dimon’s comments came after hedge fund manager Bill Ackman – a Trump endorser – also expressed concern, warning that the president is losing the confidence of business leaders and should pause the escalating trade war.
Global stock markets have plummeted since Trump announced sweeping reciprocal tariffs on April 2, marking the worst week for US equities since the onset of the COVID-19 pandemic in 2020.
The tariffs, ranging from 10% to 50%, target imports from more than 180 countries. The European Union was hit with a 20% tariff. Other major trading partners affected include Vietnam (46%), Cambodia (49%), China (34%), India (26%), Japan (24%), and South Korea (25%).
Traditional allies such as the UK, Australia, Brazil, Saudi Arabia, and the United Arab Emirates were each assigned a 10% rate. Agency reports
U.S. President Donald Trump signs an executive order in the Oval Office of the White House in Washington, D.C., U.S., March 7, 2025. REUTERS/Evelyn Hockstein